GAIL flares up on IGL show

DALAL STREET SPIKES

Despite the markets ending in the negative on Tuesday, GAIL India surged on the bourses. The counter attracted huge buying interest on the back of a strong showing by Indraprastha Gas (IGL) on the bourses, in which the company has a stake, according to market sources.

The counter has also gone up in the last few sessions on reports about the government's decision to offload its 10 per cent holding in GAIL by way of a public offer.

Across the board buying, specially by funds has led to the counter rising up on the bourses in the last few months.

The counter hit an all-time high of Rs 271 before closing at Rs 257.25, up by 7.09 per cent. More than 45.19 lakh shares were traded on the BSE. GAIL is now ranked at number 9 in BSE M-cap list today.

Players are optimistic about the company's future and generally upbeat about the oil and gas sector. The GAIL board is also meeting shortly to finalise interim dividend for FY04.